NICKELS AND DIMES:A definitive merger agreement costing about US$58 million has been agreed to in the hope that Ta Chen would be able to expand its US market share
Date: Apr 04, 2017
By: Lauly Li / Staff reporter
Ta Chen Stainless Pipe Co Ltd (大成不鏽鋼), a leading global supplier and mass distributor of stainless, aluminum and nickel alloy products, is to acquire Empire Resources Inc for US$58 million to expand the Taiwanese company’s presence in the US market.
“The merger and acquisition [M&A] deal is expected to enlarge the company’s operational scale, efficiency and competitiveness in the industry,” Ta Chen said in a filing with the Taiwan Stock Exchange on Saturday.
Ta Chen’s US subsidiary, Ta Chen International Inc, is the largest mass distributor of stainless metal products with a 30 percent market share in the US, while NASDAQ-listed Empire is the second-biggest, the Chinese-language Economic Daily News said, quoting Ta Chen officials.
The report said the deal could secure Ta Chen’s leadership position in the US market.